Local-level
Local historic districts usually enjoy the greatest level of protection, under law, from any threats that may compromise their historic integrity. This is because many land-use decisions are made at the local level. There are more than 2,300 local historic districts in the United States. Local historic districts can be administered at the county or the municipal level; both entities are involved in land use decisions.
Local historic districts are identified through a process of surveying historic resources, delineating appropriate boundaries, and enacted with all aspects of due process. Depending on the local ordinance, property owners permission may or may not be required, however all owners will be notified and have a chance to share their opinion. Most local historic districts are accompanied by design guidelines controlling changes to the properties included in the district. Many local commissions adopt specific guidelines for the tout ensemble of each neighborhood, although some smaller commissions rely on the Secretary of Interior Standards. For most minor changes, homeowners can consult with local preservation staff at the municipal office and receive guidance on and permission for the changes. Major changes however, require homeowners to apply for a Certificate of Appropriateness “COA,” and the changes may be decided upon by the historic commission or architectural review board. The COA process is carried out with all aspects of due process, with formal notification, hearings, and fair and informed decision making.
According to the National Park Service, historic districts are one of the oldest forms of protection for historic properties. The city of Charleston, South Carolina is credited with beginning the modern day historic districts movement. In 1931 Charleston enacted an ordinance which designated an "Old and Historic District" which was administered by a Board of Architectural Review. Charleston's early ordinance reflected the strong protection that local historic districts often enjoy under local law. It asserted that no alteration could be made to any architectural features which could be viewed by the public from the street. Other local historic districts, such as that in New Orleans and Savannah, Georgia, predate the Register by 10 years or more as well.
Local historic districts are most likely to generate resistance because of the restrictions they tend to place on property owners. Local laws can cause residents "to comply with (local historic district) ordinances."
The issue of local historic districts and the impact on property values is a concern to many homeowners. The effects have been extensively studied using multiple methodologies including before-and-after analysis and evaluating comparable neighborhoods with and without local designation status. Recent factual analysis has been conducted by independent researchers in a number of states, including New Jersey, Texas, Indiana, Georgia, Colorado, Maryland, North and South Carolina, Kentucky, Virginia, and elsewhere. As stated by economist Donovan Rypkema, “the results of these studies are remarkably consistent: property values in local historic districts appreciate significantly faster than the market as a whole in the vast majority of case and appreciate at rates equivalent to the market in the worst case. Simply put – historic districts enhance property values.” In a 2011 study Connecticut Local Historic Districts and Property Values, it was found that “property values in every local historic district saw average increases in value ranging from 4% to over 19% per year.” Similarly, in New York City between 1980-2000, local historic district properties on a price per square foot basis increased in value significantly more than non-designated properties. Equally important, local historic district property values were found to resist market downturns better than historic non-designated properties. A recent study investigating the data on single-family residential mortgage foreclosures and comparable non-designated neighborhoods found that designated properties were significantly less likely to experience foreclosure. Local historic district designation has proven to protect property values from wild fluxuations and provides stability in the housing market.
Read more about this topic: Historic Districts